The course will focus on new developments in the theory and empirics of international trade, FDI and globalisation. Starting with a generalisation of well-known trade theories, the course will cover topics like:
Comparative advantage and trade
Imperfect competition, economies of scale and trade
New economic geography and the location of production
The role of firms' productivity, selection and international trade
Globalisation affects countries, regions, industries, firms and individuals in many ways. International trade and foreign direct investments (FDI) are key features of the globalisation process, and recent research on trade and investments aims at improving our understanding of how such globalisation processes work and affect us. The objective of this course is to give students insights into and knowledge of theory and empirics of international trade and FDI, as a basis for better understanding of how international markets affect key issues like trade and productivity, location of firms and industries, and determination of wages and other factor prices. Furthermore, topics like trade and growth, trade and inequalities and trade and the environment will be discussed.
Upon completion of this course, the candidates should
Have a thorough knowledge of modern theory of international trade and FDI
Be familiar with empirical analyses of international trade and investment issues
Understand the global and regional political economy of trade and trade policy issues
Understand the implications of globalisation for key policy challenges like e.g. environment policies or wages and inequalities.
Be able to use insights, results and methods from trade theory and empirics to analyse the effects of globalisation and trade policy issues for e.g. specific markets, firms or regions.
Basic trade theory, for example from an undergraduate course in international economics (like SAM030 - Internasjonal handel og økonomisk vekst - in the bachelor programme at NHH) or from a textbook like Krugman and Obstfeld, International Economics, Theory and policy, 8th edition (or newer) Addison-Wesley 2008, chs. 1- 11, or (in Norwegian) Norman and Orvedal, En liten, åpen økonomi, Gyldendal Akademiske, 2010.
This course is the same as SAM466, and you will not get credit for both courses.
Required readings will consist of articles and chapters from textbooks. A complete list of required and recommended readings will be given on It´s learning.